Mobile Home Trouble
I helped some associates of mine locate and purchase a mobile home with land in Myrtle Beach, South Carolina for $35,000 about 5 months ago. What we were planning on doing is lease option the property to someone for a year and at the end of that year sell the property to that person, who would now have built up some credit by faithfully renting from us for a year, for roughly about $55,000. However, we have had a hard time finding someone to lease option it from us. What are some good techniques to find potential leasers and are there any other ways of making some money from this excellent condition 3br 2bath in pretty good area? Any insight from experienced mobile home investors is appreciated. 
P.S. The home is already on the market(MLS).
Normally, a L/O requires a down payment. Is one required for this one?
Yes, one is. What I should mention is that one of the partners owns both a real estate company and a property management company. Wondering why that is important(down payment)? Same as if someone was renting out the property, right?
I know why the deposit is important, just wondering what it has to do with the question I asked?
In view of the time it is taking to find a qualified rentor noh lessee. Perhaps you should revaluate the price you are asking. You may be in high market. However in view of the qualifications of your co investors their imput should be put to good use and market this puppy.
As time goes on and the responses are still low, then fudge your edge, lower the requirements on lease option deposit, whatever it takes. Remember the carrot is future ownership and you may have to resort to small exploders (payments) on the lease interest during the course of the lease. Perhaps a small additional payment every six months. whatever.
I am not too familiar with the economics of your exact area. Do persons inhabiting these types of housings have the ability to make deposits on lease? Out here they do not and I have had to paper the transactioins with all sort of little future payments. I site the example of the pink slip as an example of super pettiness in transaction.
I hope this has been helpful Lucius
Thanks for the reply Lufos. Reevaluating our asking price would definitely be one way to go about it. However we have already undercut everybody else in the subdivision we invested in. What are some good marketing strategies to consider to help make this sale(lease option) happen? Successful ads someone has run for this kind of investment. Input extremely appreciated.
You have so many visitors in summer - college students - rent to group - $500 per week from June to
October - make $8000 - use that as down payment and finance balance from local bank - in winter months rent to local blue collar workers - or advertise in New York times - for three
months rental at good rate - to senior citizens - Good Luck.
When advertising offer a decent rent credit every month that will be took of purchase price if bought put it in the ad it will stand out more. Most people who buy on l/o are looking for terms more than price. Flyers also work good. Hope this helps a little.
Allan Dinger
My first piece of advice is since you helped locate the investment and probably helped talk your "associates" in joining the club) when you go hunting with your buddies make sure you're always at the back of the pack.
The way to get this turkey off your backs is to offer a carrot. If that doesn't work offer a bigger carrot. Repeat the process.
Put an ad in the paper, "No bank financing, No bank qualifying. Immediate occupancy available. 50% rent credit( * first six months) www.etc.etc.etc.
Thanks everybody for the replies. They absolutely helped, especially about putting special ad in paper and the flyers are also a good idea. Thanks again everybody. I do want to make it clear, if all else fails we can rent out this unit and make it cash flow forever. $35,000 3br 2 bath 1400 square ft mobile home (immaculate condition) rented out at $600 a month having bought it cash. You do the Math.
Rent that bad boy out and make sure you have a good insurance policy. Make it cash one way or the other and rent is money that you did not have to work for!! Wish you well!!!
I have a feeling that, beig you are associated with a realtor/property managemen company, that your advertising is very "pretty". Pretty advertising looks good and tell a good story. But as far as results.... well you are posting for help. For any lease/option, land contract, even rentals when things are tough, I place the following ad. "Owner will finance NO BANKS 123 main st anytown usa xxx 555-1212." Notice it doesn't mention price, downpayment, terms, payments, land contract, lease option etc... Why? because you don't know which customer is goin to show up. You need to generate enough interest to produce phone calls, and then you need someone smart enough on the other end of the phone to know how to handle the phone call. Have you ever had a friend call in on one of your ads? Maybe the guy answering the phones and screening is the problem.
Good Luck,
Shawn(OH)
Thanks for the great ad idea, loanwizard. Do you usually post this ad in a newspaper or just make flyers? Just Wondering